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Aussies fear for their jobs as China blocks meat exports to largest abattoirs

Details: Category: China; Created: Wednesday, 13 May 2020 21:49; Written by Olivana Smith Lathouris - 9 News

Eighteen per cent of Australia's beef production is exported to China, with exports worth more than $3 billion a year.

In the short-term, the situation is likely to drive down beef prices at the supermarket however other industries are expected to feel the pressure. Meat prices are falling at the supermarkets, but not for long. (9News)

The four meatworks involved - JBS Dinmore, JBS Beef City, Kilcoy and Northern Cooperative Meat Company - account for roughly 35 per cent of Australian beef exports.

Officially, the message from Beijing is the decision to block exports is a result of issues with food labelling and health certificates but there is growing concern this is in direct response to Scott Morrison calling for an inquiry into China's knowledge about the origins of coronavirus.

China Foreign Ministry spokesman Zhao Lijian said customs officers had detected "repeated violations" of inspection and quarantine requirements by a "few" Australian beef export companies.

"China has decided to suspend effectively immediately, processing four Australian companies' import declarations for meat products," he told a press conference on Tuesday according to a Foreign Ministry transcript. PM says all children back in school classrooms as part of stage-one.(9News)

"The Chinese side has asked the Australian side to conduct a thorough investigation to find the cause and address the issue."

Trade Minister Simon Birmingham says it is concerning the suspensions appear to be based on highly technical issues, with some dating back more than a year.

"It's disappointing that no notification was given prior to that suspension taking effect," he said.

In the short-term, the situation is likely to drive down beef prices at the supermarket however other industries are expected to feel the pressure.

Relations with China have soured rapidly after Australia launched a global push for an inquiry into the origins of the coronavirus pandemic.

On Sunday, China threatened to slap an 80 per cent tariff on Australian barley and the dairy industry has called an urgent meeting with government, concerned they could be the enxt industry to be caught up in the rising tensions.

Dairy farmers are concerned their industry could be next in line to feel pressure from China. (Getty)

There are also deep concerns this will cost Australians their jobs.

Despite the concern, Senator Birmingham maintained Australia's push for a global inquiry into the origins of coronavirus was not tied to export arrangements for beef or barley.

"We certainly don't see any relationship and we would expect that no other counterpart country should see a relationship between those factors either," he said.

Earlier this month, Beijing's ambassador in Canberra warned Chinese people would reconsider buying Australian beef if Prime Minister Scott Morrison continued to call for the investigation.

"The issue of the origin and transmission of the virus needs to be assessed scientifically by medical professionals," Mr Zhao said.

"Political manoeuvres under the context of the pandemic will only disrupt international anti-virus cooperation and won't gain any support."

A farmer from rural Queensland says he has been forced to work "for free" amid worsening drought conditions that have forced him to dramatically cull his livestock. (AP/AAP)

CEO of the National Farmers Federation Tony Mahar has told Today Australian farmers are nervous about the situation and after struggling through months of drought, are hopeful the government will resolve the issue quickly.

"We really want the government to address these what are hopefully technical issues, and move on because China is such an important market for Australian farmers," he said.

Mr Mahar said the Australian government shouldn't sacrifice Australia's meat and agriculture industry for the sake of holding their ground against China.

"You have a country hellbent on saving face in China. How will this resolve. And in the meantime what does it do to the price of beef? What does it do to those exporters? What does it do to our farming sectors?" he said.

"We are really hopeful they are addressed quickly. We don't want to see any closure of markets. We want to see them opening up. China is a really important partner … What we want to do is to address those concerns and move on."

Agriculture Minister David Littleproud said the beef suspension was a lesson for exporters about meeting other countries' import standards.

"If you don't, we've got to understand what's gone wrong and how do we fix it quickly," he said.

National Farmers' Federation president Fiona Simson said disruptions to exports were concerning.

"We recognise in relationships as significant as that between Australia and China, from time to time, issues do arise," she said.

"When they do, it is important that both parties work together in a respectful manner to, as soon as possible, resolve the challenge to an end that is satisfactory to both."

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Aussies fear for their jobs as China blocks meat exports to largest abattoirs

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